Mediaco Holding Shares Face Sustained Downward Pressure

Mediaco Holding US58450D1046

The equity of media firm Mediaco Holding is currently experiencing significant volatility. Despite a notable single-day rally, a broader technical perspective reveals a persistent negative trajectory for the stock.

Financial figures released on November 20 painted a complex picture. For the first nine months of the year, net sales surged by 51% to $94.7 million, driven primarily by recently acquired assets. However, this top-line growth was overshadowed by a net loss of $33.9 million, a stark reversal from the profit recorded in the prior-year period. A brighter spot was the adjusted EBITDA, which showed marked improvement, rising to $5.0 million. In the third quarter, the sales margin stood at 6%, with digital business contributing nearly half of the advertising revenue.

A Brief Rally Fades

On Thursday, December 4, the company's shares advanced by 5.08%, closing at $0.90. Throughout that session, the price fluctuated between $0.87 and $0.94, representing an intraday range of 7.55%. Trading volume remained light, with approximately 6,000 shares changing hands. As of Friday's trading, the stock was quoted at $0.90, having retreated from an earlier daily peak of $0.9677.

Long-Term Bearish Outlook Prevails

These recent gains do little to offset a pattern of sustained weakness. Over a two-week period, the share price declined by 5.21%, and it fell 10.68% in the past month. Year-to-date, the loss approaches 30%. Technical analysis continues to rate the situation as bearish, with the stock entrenched in a broad declining trend. Forecasts suggest the potential for further weakening of up to 36% over the coming three months. Currently, the shares trade roughly 41% below their 52-week high.

Executive Compensation Revised

In a late-November announcement, Mediaco Holding disclosed new employment agreements for its senior leadership. The annual salary for CEO Albert Rodriguez will increase from $700,000 to $850,000, with a scheduled rise to $950,000 by 2027. Beyond a potential bonus, Rodriguez was granted substantial stock awards valued at several million dollars. These equity packages are subject to vesting over two to three years, contingent upon meeting specific performance targets.

Operational Highlights Offer a Silver Lining

On the operational front, the company reported audience growth. Its television network, EstrellaTV, achieved the strongest prime-time growth in the key 18-49 demographic. Radio stations also posted significant gains in major markets including New York and Los Angeles. A new partnership has additionally brought the HOT 97 station to television audiences in Atlanta. Upcoming quarterly reports will indicate whether these operational successes can ultimately reverse the long-term downward trend in the stock's valuation.